More Fed Bond Buys Hinge on Inflation, Indicators

By

Sudeep Reddy

August 11, 2011

The Federal Reserve put another round of bond buying on the table this week, but a new program may be further off than eager markets expect.

Fed officials would need to see evidence of continued weakening in economic growth in coming months before launching a third round of government-bond purchases. An even more crucial gauge is inflation. The central bank is unlikely to take such a big step, which would probably renew worries about...